Memory chips are being diverted toward lucrative AI data centers
of ConsumerAffairsA shortage of memory chips is pushing up the cost of laptops and desktop computers, with Gartner projecting PC prices will rise about 17% in 2026.
The artificial intelligence boom is a major reason: chipmakers are directing more production capacity toward high-performance memory for AI servers and data centers.
Consumers shopping for a computer may face higher prices, fewer inexpensive models and less memory and storage for their money.
Consumers who have recently shopped for a new laptop may have noticed that computers aren't getting cheaper the way technology products often do.
One big reason is hiding inside the machines.
A global shortage of memory chips is raising manufacturers' costs, and increasingly those costs are being passed along to consumers. The shortage is being fueled in large part by the enormous appetite for chips needed to build artificial intelligence infrastructure.
Research firm Gartner estimates that the combined price of DRAM memory and solid-state-drive storage will surge about 130% by the end of 2026 compared with 2025. Gartner expects that increase to push average PC prices about 17% higher.
The squeeze is already showing up in manufacturers' results. HP recently reported higher PC revenue despite selling fewer units, with higher prices helping offset rising memory and storage costs. The company also warned that those component costs are expected to increase further.
Why AI is competing with your laptop
This isn't primarily a shortage of the processors made by companies such as Intel and AMD. The biggest problem involves memory particularly DRAM, which computers use as working memory, and NAND flash, which is used in solid-state drives.
AI data centers consume staggering amounts of memory. Chip manufacturers including Samsung, SK Hynix and Micron have consequently devoted more resources to high-bandwidth memory and other products used in servers, where demand and profit margins are strong.
That leaves less manufacturing capacity available for ordinary consumer products.
TrendForce said major DRAM manufacturers are prioritizing server production, squeezing the supply available for consumer and PC memory. It expects conventional DRAM contract prices to rise another 13% to 18% during the third quarter, while NAND flash prices are forecast to increase 10% to 15%.
In other words, consumers buying computers are indirectly competing with companies spending billions of dollars to build AI data centers.
Budget computers could be hit hardest
The impact may be especially noticeable at the inexpensive end of the PC market.
Memory represented about 16% of the cost of producing a PC in 2025, according to Gartner. It expects that share to reach 23% as memory prices increase.
That's a difficult problem for manufacturers of budget laptops because those machines already have thin profit margins. Manufacturers have less room to absorb higher component costs without raising retail prices.
Gartner goes so far as to predict that the sub-$500 PC market could effectively disappear by 2028 if current trends continue.
Manufacturers have another option besides raising prices: reducing specifications.
A laptop that might previously have included more RAM or a larger SSD could instead be sold with less memory or storage at the same price. TrendForce says rising memory costs are already putting pressure on manufacturers to limit specifications and delay upgrades.
Consumers are holding onto computers longer
Higher prices appear likely to affect how often Americans replace their PCs.
Gartner forecasts worldwide PC shipments will fall 10.4% this year and estimates consumers will extend the useful life of their computers by about 20% as prices rise.
That could create an unusual cycle: weak consumer demand normally causes semiconductor prices to fall. But this time, strong AI demand is absorbing much of the available capacity even as consumers pull back.
Gartner has said shortages of DRAM and NAND memory could extend into the second half of 2027. TrendForce also expects AI demand to keep DRAM supplies tight next year, although NAND flash supplies could begin loosening during the second half of 2027 as additional manufacturing capacity comes online.
What computer shoppers can do
Consumers who need a computer now may want to pay closer attention to specifications rather than simply comparing model prices. A discounted laptop isn't necessarily a bargain if it comes with significantly less RAM or storage than similarly priced machines did a year ago.
Machines with 16GB of RAM and at least a 512GB SSD may provide a better useful life than stripped-down models, particularly as software and AI features become more demanding.
Shoppers who don't need the latest model may also find better value in previous-generation computers, refurbished PCs or clearance inventory purchased before the latest component price increases worked their way through the supply chain.
For consumers who can wait, however, the decision is more complicated. Memory prices aren't guaranteed to remain this high indefinitely, but current industry forecasts suggest the computer industry's chip shortage is unlikely to disappear soon.
Photo By CNET
Posted: 2026-08-31 11:25:15
